pSivida Corp. Announces $7.0 Million Investment by RA Capital

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Published: Mar 13, 2014 9:46 a.m. ET

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WATERTOWN, Mass., Mar 13, 2014 (BUSINESS WIRE) --
pSivida Corp. (NASDAQ:PSDV)
(ASX:PVA), a leader in developing sustained release, drug delivery
products for treatment of back-of-the-eye diseases, announced today that
RA Capital has entered into a securities purchase agreement with the
Company to invest approximately $7.0 million in a registered direct
offering through the sale of a total of 1.7 million shares of the
Company's common stock at a per share price of $4.11.

The offering is expected to close on or about March 18, 2014 subject to
the satisfaction of customary closing conditions. The Company intends to
use the proceeds from this offering to accelerate its Tethadur program,
fund its clinical trials for posterior uveitis and for general corporate
purposes.

A shelf registration statement relating to the shares of common stock
issued in the offering has been filed with the Securities and Exchange
Commission (SEC) and has been declared effective. A prospectus
supplement relating to the offering will be filed with the SEC. Copies
of the prospectus supplement and accompanying prospectus may be obtained
from Northland Securities, Inc., at 45 South Seventh Street, Suite 2000,
Minneapolis, MN 55402, or by calling toll free 800-851-2920, or by
e-mail at apafko@northlandcapitalmarkets.com.
This announcement is neither an offer to sell nor a solicitation of an
offer to buy any of our shares of common stock. No offer, solicitation
or sale will be made in any jurisdiction in which such offer,
solicitation or sale is unlawful.

About pSivida Corp.

pSivida Corp., headquartered in Watertown, MA, develops tiny, sustained
release, drug delivery products designed to deliver drugs at a
controlled and steady rate for months or years. pSivida is currently
focused on treatment of chronic diseases of the back-of-the-eye
utilizing its core technology systems, Durasert™ and BioSilicon™,
including Tethadur™. The injectable, sustained release micro-insert
ILUVIEN® for the treatment of chronic DME considered insufficiently
responsive to available therapies, licensed to Alimera Sciences, Inc.,
is marketed in the U.K. and Germany and has also received marketing
authorization in Austria, France, Portugal, and Spain and is awaiting
authorization in Italy. Alimera has filed for ten additional EU country
approvals through the Mutual Recognition Procedure. Alimera is seeking
FDA approval for ILUVIEN for DME in the US. pSivida has instituted the
first of two planned pivotal Phase III clinical trials of Medidur™ for
the treatment of posterior uveitis, a chronic back-of-the-eye disease.
An investigator-sponsored clinical trial is ongoing for an injectable,
bioerodible micro-insert to treat glaucoma and ocular hypertension, a
product candidate on which Pfizer Inc. has an option. pSivida's
FDA-approved Retisert®, licensed to Bausch & Lomb Incorporated, provides
long-term, sustained drug delivery to treat posterior uveitis.

SAFE HARBOR STATEMENTS UNDER THE PRIVATE SECURITIES LITIGATION REFORM
ACT OF 1995: Various statements made in this release regarding amounts
to be raised by the Company are forward-looking, and are inherently
subject to risks, uncertainties and potentially inaccurate assumptions.
All statements that address activities, events or developments that we
intend, expect or believe may occur in the future are forward-looking
statements. The following are some of the factors that could cause
actual results to differ materially from the anticipated results or
other expectations expressed, anticipated or implied in our
forward-looking statements: uncertainties with respect to: Alimera's
ability to finance, achieve additional marketing approvals, obtain
adequate pricing and reimbursement for, successfully commercialize and
achieve market acceptance of, and generate revenues to pSivida from,
ILUVIEN for DME in the EU; Alimera's ability to obtain regulatory
approval for, and if approved, to finance, successfully commercialize
and achieve market acceptance of, and generate revenues to pSivida from,
ILUVIEN for DME in the U.S.; the ability to finance, complete and
achieve a successful outcome for Phase III trials for, and file and
achieve marketing approvals for, Medidur for posterior uveitis,
including achieving acceptable risk-to-benefit and safety profiles in
light of the CRL for ILUVIEN; initiation, financing and success of
Latanoprost Product Phase II trials and any exercise by Pfizer of its
option; ability of Tethadur to successfully deliver proteins, peptides
and other large biologic molecules; ability to develop product
candidates and products and potential related collaborations; initiation
and completion of clinical trials and obtaining regulatory approval of
product candidates; continued sales of Retisert; adverse side effects;
ability to attain profitability; ability to obtain additional capital;
further impairment of intangible assets; fluctuations in operating
results; decline in royalty income; ability to, and to find partners to,
develop and market products; termination of license agreements;
competition and other developments affecting sales of products; market
acceptance; protection of intellectual property and avoiding
intellectual property infringement; retention of key personnel; product
liability; consolidation in the pharmaceutical and biotechnology
industries; compliance with environmental laws; manufacturing risks;
risks and costs of international business operations; credit and
financial market conditions; legislative or regulatory changes;
volatility of stock price; possible dilution; absence of dividends; and
other factors described in our filings with the SEC. Given these
uncertainties, readers are cautioned not to place undue reliance on such
forward-looking statements. Should known or unknown risks materialize,
or should underlying assumptions prove inaccurate, actual results could
differ materially from past results and those anticipated, estimated or
projected in the forward-looking statements. Our forward-looking
statements speak only as of the dates on which they are made. We do not
undertake any obligation to publicly update or revise our
forward-looking statements even if experience or future changes makes it
clear that any projected results expressed or implied in such statements
will not be realized.

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